Yahoo hasn’t being doing too good lately, but it seems that won’t stop them from giving their competition a run for their money, or to even consider competing in new emerging markets. David Katz, Yahoo’s VP of Mobile for the American region, just had a little briefing with Reuters yesterday and among everything they talked about, he also spilled the news of an update to their current Yahoo Messenger app in which they’ll bring video calls and chats between iPhone and Android users.

Will this give FaceTime something to worry about? Well, according to Katz, this service will also allow you to have the same video chats and calls with your messenger buddies through your Mac or PC, so this does raise the bar quite a bit in comparison to FaceTime’s current offering. Will it really kill competition offering this over 3G? Only time will tell. Skype does offer voice calls over 3G at the moment, but we do wonder why they haven’t given video calls a try? I know most of you would agree it’s not that reliable if you begin walking around with your Skype call active over 3G, so I guess the limitation has to do with quality standards.

The only question left is it will be approved by Mr. Fart Apps man on the App Store, but considering Fring and Tango already offer similar services through their apps, the case could hold water. According to another Yahoo Spokesperson, the app is already approved, and we should expect it shortly,.. to which I’d say: “see to believe”.